Interested In Meilleure Health International Industry Group Limited (HKG:2327)? Here’s How It Performed Recently

For investors, increase in profitability and industry-beating performance can be essential considerations in an investment. Below, I will examine Meilleure Health International Industry Group Limited’s (HKG:2327) track record on a high level, to give you some insight into how the company has been performing against its long term trend and its industry peers.

Check out our latest analysis for Meilleure Health International Industry Group

Did 2327 perform better than its track record and industry?

2327’s trailing twelve-month earnings (from 31 December 2018) of HK$81m has increased by 0.6% compared to the previous year.

However, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of 21%, indicating the rate at which 2327 is growing has slowed down. To understand what’s happening, let’s examine what’s going on with margins and whether the entire industry is facing the same headwind.

SEHK:2327 Income Statement, April 3rd 2019
SEHK:2327 Income Statement, April 3rd 2019

In terms of returns from investment, Meilleure Health International Industry Group has fallen short of achieving a 20% return on equity (ROE), recording 9.9% instead. However, its return on assets (ROA) of 7.2% exceeds the HK Trade Distributors industry of 5.0%, indicating Meilleure Health International Industry Group has used its assets more efficiently. And finally, its return on capital (ROC), which also accounts for Meilleure Health International Industry Group’s debt level, has increased over the past 3 years from 2.3% to 5.5%. This correlates with a decrease in debt holding, with debt-to-equity ratio declining from 105% to 27% over the past 5 years.

What does this mean?

While past data is useful, it doesn’t tell the whole story. Positive growth and profitability are what investors like to see in a company’s track record, but how do we properly assess sustainability? I suggest you continue to research Meilleure Health International Industry Group to get a more holistic view of the stock by looking at:

  1. Future Outlook: What are well-informed industry analysts predicting for 2327’s future growth? Take a look at our free research report of analyst consensus for 2327’s outlook.
  2. Financial Health: Are 2327’s operations financially sustainable? Balance sheets can be hard to analyze, which is why we’ve done it for you. Check out our financial health checks here.
  3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.

NB: Figures in this article are calculated using data from the trailing twelve months from 31 December 2018. This may not be consistent with full year annual report figures.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.